Collector Orders Legal Steps To Recover Netams Sugar Factory Dues

The collector reviewed the issue during a meeting at the collectorate, focusing on recovering amounts owed to sugarcane farmers and employees of the factory, which has remained closed for several years.

Officials said the factory owes ₹35.92 crore to farmers and around ₹13 crore to employees. The collector instructed officials to expedite the legal process to recover the amounts and ensure early payment to the beneficiaries.

The issue has remained a long-standing concern in the region, with farmers and workers demanding their dues for nearly five years after the factory stopped operations without clearing payments. According to earlier reports, the factory also owes about ₹60 crore to a finance company, taking the total liabilities to over ₹100 crore.

The situation earlier triggered protests by farmers, who opposed a proposal by the finance company to auction the factory’s assets to recover its loan. Farmers argued that the auction should not proceed until their dues were cleared.

Leaders of the Nethaji Sugarcane Farmers’ Association, including Adinarayana Reddy and Srinivasulu Yadav, had led protests seeking government intervention.

During the review meeting, the collector said the issue would be brought to the notice of the government and directed officials to coordinate with all departments to ensure recovery of the pending dues for farmers and workers.

District Sugar Factory Commissioner G. Muthyalu, farmers’ association leaders Adinarayana Reddy and Srinivasulu, employees’ union leaders Bhaskar Reddy and Sampath Kumar, along with officials, farmers and workers, attended the meeting.